Banks Issue Apologies Over Tracker Mortgage Scandal

Banks Issue Apologies Over Tracker Mortgage Scandal

The Central Bank has admitted it'll have to sit on the country's biggest banks until they compensate everyone affected by the tracker mortgage scandal.

Around 13,000 people are known to have been wrongly taken off the rates by their lender.

An investigation's ongoing; this evening the banks responsible have issued coordinated apologies and explained how they plan to fix the mess.

KBC Bank said it "fully acknowledges" the errors that it admitted "should not have happened" and is working to compensate affected customers. KBC says to date it had identified 1041 customers affected but it now accepts there could be as many as 600 more - all will be identified by the end of the year.

Bank of Ireland says it will start a compensation process for 4,300 customers from the 10th of November.

AIB says by year end it will have identified 3,416 customers - 12 of whom lost their homes. Compensation will be paid by the first quarter of next year it says.

Permanent TSB says it has 1971 customers affected and all will be on the correct rate within the next week and, offers of redress and compensation will be issued by the end of December.

Ulster bank says 1,000 of its customers will be compensated by the end of the year with 2500 others compensated early next year. The bank is offering an initial 50-thousand euro to those who lost their homes.

Governor of the Central Bank, Philip Lane, said “given some lenders’ past behaviour, the Central Bank is under no illusion that this will require continued and concerted pressure to ensure all affected customers receive redress and compensation."

“It is now incumbent on the heads of the banks to ensure that all affected customers are identified, and to ensure that redress and compensation are delivered swiftly to those to whom so much distress has been caused.”